App Ad Demand Grows In China, Emerging Areas

As the population of smartphone owners grows in emerging markets, so does the opportunity for app developers to recruit new users. It also means more business for mobile ad networks
selling app install ads in those markets.

In that vein, China-based mobile ad firm AppFlood released data Thursday showing app install rates (per campaign) continued to rise in the second
quarter across Africa, the Middle East, Latin America and Asia.

Install rates in those markets are now in the range of 2% to 3%, though well below the 6.07% in North America, and
3.73% in Western Europe, in the second quarter, AppFlood also reported that Asia and the Middle East for the first time accounted for nearly half (47%) of mobile installs for the first time in the
quarter.

That partly reflects that more than half (53%) of the ad network’s traffic came from those two regions. China is driving much of the increased activity in Asia as well
as globally. Without providing dollar figures, AppFlood said average mobile ad spend in the second quarter more than doubled (up 123%) from the prior quarter. By comparison, the average spend in the
U.S. slowed to an increase of 66%.

Chinese advertisers are
also pushing heavily into other emerging markets. China’s spending quarter-over-quarter increased by triple digits in the Middle East, Asia and Latin America, as well as in North America. By
contrast, spend by U.S. advertisers grew just 10% globally.

Among Chinese advertisers, much of the spending is tied to the promotion of productivity apps. That was the largest Android
app category overall in the quarter in terms of ad spend, followed, by personalization, communication and “tools” apps. The most popular apps in China included WeChat, QQ2013 (messaging)
and Taobao (shopping).

AppFlood in April began rolling out a
real-time bidding (RTB) exchange and demand-side platform to bolster its existing mobile ad network. The company says it now serves 300 million impressions across 82,000 apps. Its ad network reaches
145 million users and serves 100,000 daily installs. AppFlood parent company PapayaMobile, headquartered in Beijing, with offices in San Francisco and London, was founded by ex-Google executive Si
Shen.

Soon enough the whole world will be mobile equipped. I can only imagine what that will do to apps. There are millions of apps out in stores right now, the next few years will show what is going to happen to all of the app developers.
Sincerely,
Misty
www.ABMobileApps.com